From innovation projects to knowledge networks: the sectoral organisation of innovation in the Brazilian ICT sector

This paper explores the structure of the project-based innovation networks promoted by tax incentives to innovation activities in the Brazilian ICT sector ('ICT Law'). It proposes a framework for characterising the decentralised governance of innovation projects in sectors, identifying: 1) the boundaries between firms and technological partners; 2) the specialisation of actors in types of activities; 3) the speed of change in the collaborations between firms and technological institutes. The empirical analysis is based on the data of more than 10,000 innovation projects conducted between 1997 and 2003. The results show a strong re-organisation of the innovation networks in the sector during the period, attributed mainly to a shift from investments in middleware to software-related innovation activities, the re-specialisation of the subsidiaries of multinational companies, and the emergence of private research institutes as central nodes inside the sectoral innovation system.